Common use of SUPPLEMENTARY GENERAL REQUIREMENTS Clause in Contracts

SUPPLEMENTARY GENERAL REQUIREMENTS. EXECUTIVE SUMMARY OF CONTENTS Basic Tenets of the Contract This Contract implements the “construction management” or “CM/GC” project delivery method as described in The Regents’ Guidance. The usual method of procurement is by solicitation of competitive sealed proposals, although other procurement methods may be utilized, as permitted by law. The CM/GC is under contract to supply both preconstruction services and construction services to complete the project and place the Owner in occupancy of the project in a “turnkey” fashion. The Owner contracts with the Design Professional separately from the CM/GC using the Design Professional Contract for CM/GC. The design and construction progress in a coordinated fashion using one or more Component Change Orders to direct construction of a Component package (such as site work, foundations, etc.) while the design progresses toward complete Construction Documents. Once either a Guaranteed Maximum Price (GMP) or a Lump Sum Price is agreed between the Owner and the CM/GC, the CM/GC is “at risk” for project price, project schedule, and completion of all construction as set forth in the Contract Documents. The CM/GC holds all trade contracts and trade supplier contracts. Often, the Owner will designate a Program Manager to assist the Owner in administering the Project. The Program Manager does not take on any of the responsibilities of either the Design Professional or the CM/GC. The Program Manager acts for the Owner to discharge the Owner’s obligations to the Project and coordinates the interaction of the Project Team. The Program Manager’s agreement is independently drafted to meet the particular management needs of the Project. The Request for Proposals should identify whether a Program Manager will be utilized for the Project. The pricing and financial structure for this CM/GC Contract is the “cost-plus” method, with a fixed dollar cap on the total price of the contract (the GMP), and certain other contingencies. The sole basis for the “plus” portion of the Contract is the CM/GC’s Fee, which is defined as the CM/GC’s “gross profit” as set forth in Section 4, Part 1, Compensation. The sole basis for “cost” throughout this Contract is Actual Cost, as defined in Section 4, Part 4. In addition to the GMP, there are total cost limitations imposed on Actual Costs allowed for preconstruction, construction overhead, salary and labor costs, both as to type of cost and allowable amounts. Actual cost is the only basis for payments to the CM/GC under this Contract, unless a Lump Sum Price is agreed between the Owner and CM/GC. There is one contingency fund under the GMP. It is the “Construction Contingency,” which is largely under the control of the CM/GC pursuant to the terms of this Contract, and subject to Owner’s approval that will be “not be unreasonably withheld.” The CM/GC’s construction contingency is eliminated if the Owner and CM/GC agree to a Lump Sum Price for the project, upon which the CM/GC is then paid based upon an agreed upon schedule of values for the remainder of the Project. EXECUTIVE SUMMARY OF CONTENTS CM/GC FORM OF AGREEMENT GENERAL REQUIREMENTS